People broker deals on a daily basis, but the point worthy of note is; How do they do it? How do they go about it? How do the buyers get to the sellers? What makes a deal pull through? There are answers to all these questions.
It all stems from approach, integrity and persistence.
So many crude sellers have laid down procedures, though it is worthy to note that there are fraudsters in this line of business and they are always on the prowl.
They develop procedures and send to real buyers in order to defraud them.
Procedure is very important in facilitating a crude oil deal.
Any seller who is willing to give you a 2% performance bond is genuine.
There are different procedures and these differ depending on the seller of the crude product.
You can see below some sample procedure from one of my seller.
This is the best you can ever get anywhere: TTO 1.
Buyer and seller sign the Sales/ Purchase Contract Agreement with Banking coordinates.
2.
Buyer's bank PRE-ADVICE LETTER OF CREDIT to Seller's bank.
3.
Seller Bank posts 2% ACTIVE PERFORMANCE BOND upon receipt and confirmation of buyers PRE-ADVICED LETTER OF CREDIT.
4.
Buyers bank places OPERATIVE LETTER OF CREDIT in favour of seller for total cost of cargo and commission to agents and facilitators.
5.
Seller confirms OPERATIVE LETTER OF CREDIT and issues ATB to Buyer's independent inspectors within 72 hours.
6.
Buyer's inspectors go on board vessel within 72 hours after the confirmation of the buyers LC, to conduct Q & Q, inspection report made available to Buyer.
7.
Re-assignment of cargo is done in buyer's name and CPA issued, signed by Buyer and returned to the Seller within 4 working days of receiving a positive Q & Q report.
All Original documents handed over to the buyer's bank.
8.
Buyer's Super cargo goes on board within 3 days after the re-assignment and CPA signed.
9.
Payment via swift made to the various accounts in the SPA within 72 hours of Super cargo going on board and Vessel sails afterwards.
$12.
00USD par barrel.
$6.
00 net TO BUYER $6.
00 TO BROKERS, $2.
00 TO SELLER'S AGENT $2.
00 TO BUYER'S AGENT $2.
00 TO FACILITATORS (BUYER / SELLER $1.
00 EACH).
CIF PROCEDURE: PROCEDURE: 1 Seller signs and seals the contract and dispatches to the Buyer in form of email.
Buyer countersigns the contract and dispatches a duplicate copy to the Seller in form of e-mail.
Buyer and Seller deposit same at their respective Banks.
Seller's vessel issues notice of readiness (NOR) to buyer's port of discharge and copy all parties involved.
Buyer's bank issues via SWIFT, a Non-Operative, Irrevocable, Transferable, Divisible and Confirmed Letter of Credit to seller's bank in favour of seller.
This is to be done within 3 banking days after the issuance of Nor.
Seller's bank issues a 2% PB to buyer's bank which automatically activates the Buyer's LC and the Buyer's LC becomes Operative.
Upon confirmation of the activated LC, Seller's loaded vessel within 48 hours departs for buyer's port of discharge.
Sellers bank valid shipping documents which shall include the following: A).
Notarized Commercial Receipt naming Buyer, contract number, goods and quality indicating transfer of the title.
B).
Shipping advice indicating,designated vessel name, loading port, estimated loading time, estimated time of departure, estimated time of arrival in destination port ( FULL ETA).
C).
Signed commercial invoice indicating the contract number and the name of the carrying vessel.
(3 originals and 3 copies) D).
Quality and Quantity certificate issued at the loading port.
E).
Charter party agreement and Full set( 3 originals and 3 copies) of clean on-board Bills of lading made out to order; bank endorsed and marked "freight pre-paid", indicating the name of the carrying vessel with the Buyer as the "Notifying party".
Seller's loaded vessel arrives at the buyer's discharge port and Buyer conducts Q&Q inspection at buyer's expenses.
Price is gross $8 net to buyer is $5 and $3 to both side agents and facilitators.
Payment is done via swift at the out-turn of barrels $8.
00USD par barrel.
$5.
00 net TO BUYER $3.
00 TO BROKERS, $1.
00 TO SELLER'S AGENT $1.
00 TO BUYER'S AGENT $1.
00 TO FACILITATORS (BUYER / SELLER $00.
50 CENTS EACH).
TANKER-TO-TANKER TRANSSHIPMENT PROCEDURE: 1.
Buyer and seller sign the Sales/ Purchase Contract Agreement with Banking coordinates.
2.
Buyer's bank issues via SWIFT, a PRE-ADVICE of the Irrevocable, Transferable, Divisible and Confirmed Letter of Credit, which will be issued to seller's bank in favour of seller.
3.
Seller Bank posts 2% ACTIVE PERFORMANCE BOND upon receipt and confirmation of buyers PRE-ADVICED LETTER OF CREDIT.
4.
Buyer places an Irrevocable, Transferable, Divisible and Confirmed Letter of Credit to Sellers bank in favour of seller.
5.
Seller confirms Buyers Irrevocable, Transferable, Divisible and Confirmed Letter of Credit, issues NOR (NOTICE OF READINESS), LONGSIDES within 72 hours with Buyer's Vessel and Transships the Cargo to Buyers vessel.
6.
Buyer's inspectors go on board vessel within 72 hours to conduct Q & Q, inspection report made available to Seller.
7.
Payment via swift made to the various accounts in the SPA within 72 hours of Submission of Cargo Documents, Inspection Report, Discharge Certificate and Masters report to Buyers Bankers and Vessel sails afterward.
$12.
00USD par barrel.
$6.
00 net TO BUYER $6.
00 TO BROKERS, $2.
00 TO SELLER'S AGENT $2.
00 TO BUYER'S AGENT $2.
00 TO FACILITATORS (BUYER / SELLER $1.
00 EACH).
Any seller who is willing and ready to do the above is for real.
You have to be careful in deals so you do not run into the wrong hands.
Crude oil deal pays, just be wise and do the right thing.
It all stems from approach, integrity and persistence.
So many crude sellers have laid down procedures, though it is worthy to note that there are fraudsters in this line of business and they are always on the prowl.
They develop procedures and send to real buyers in order to defraud them.
Procedure is very important in facilitating a crude oil deal.
Any seller who is willing to give you a 2% performance bond is genuine.
There are different procedures and these differ depending on the seller of the crude product.
You can see below some sample procedure from one of my seller.
This is the best you can ever get anywhere: TTO 1.
Buyer and seller sign the Sales/ Purchase Contract Agreement with Banking coordinates.
2.
Buyer's bank PRE-ADVICE LETTER OF CREDIT to Seller's bank.
3.
Seller Bank posts 2% ACTIVE PERFORMANCE BOND upon receipt and confirmation of buyers PRE-ADVICED LETTER OF CREDIT.
4.
Buyers bank places OPERATIVE LETTER OF CREDIT in favour of seller for total cost of cargo and commission to agents and facilitators.
5.
Seller confirms OPERATIVE LETTER OF CREDIT and issues ATB to Buyer's independent inspectors within 72 hours.
6.
Buyer's inspectors go on board vessel within 72 hours after the confirmation of the buyers LC, to conduct Q & Q, inspection report made available to Buyer.
7.
Re-assignment of cargo is done in buyer's name and CPA issued, signed by Buyer and returned to the Seller within 4 working days of receiving a positive Q & Q report.
All Original documents handed over to the buyer's bank.
8.
Buyer's Super cargo goes on board within 3 days after the re-assignment and CPA signed.
9.
Payment via swift made to the various accounts in the SPA within 72 hours of Super cargo going on board and Vessel sails afterwards.
$12.
00USD par barrel.
$6.
00 net TO BUYER $6.
00 TO BROKERS, $2.
00 TO SELLER'S AGENT $2.
00 TO BUYER'S AGENT $2.
00 TO FACILITATORS (BUYER / SELLER $1.
00 EACH).
CIF PROCEDURE: PROCEDURE: 1 Seller signs and seals the contract and dispatches to the Buyer in form of email.
Buyer countersigns the contract and dispatches a duplicate copy to the Seller in form of e-mail.
Buyer and Seller deposit same at their respective Banks.
Seller's vessel issues notice of readiness (NOR) to buyer's port of discharge and copy all parties involved.
Buyer's bank issues via SWIFT, a Non-Operative, Irrevocable, Transferable, Divisible and Confirmed Letter of Credit to seller's bank in favour of seller.
This is to be done within 3 banking days after the issuance of Nor.
Seller's bank issues a 2% PB to buyer's bank which automatically activates the Buyer's LC and the Buyer's LC becomes Operative.
Upon confirmation of the activated LC, Seller's loaded vessel within 48 hours departs for buyer's port of discharge.
Sellers bank valid shipping documents which shall include the following: A).
Notarized Commercial Receipt naming Buyer, contract number, goods and quality indicating transfer of the title.
B).
Shipping advice indicating,designated vessel name, loading port, estimated loading time, estimated time of departure, estimated time of arrival in destination port ( FULL ETA).
C).
Signed commercial invoice indicating the contract number and the name of the carrying vessel.
(3 originals and 3 copies) D).
Quality and Quantity certificate issued at the loading port.
E).
Charter party agreement and Full set( 3 originals and 3 copies) of clean on-board Bills of lading made out to order; bank endorsed and marked "freight pre-paid", indicating the name of the carrying vessel with the Buyer as the "Notifying party".
Seller's loaded vessel arrives at the buyer's discharge port and Buyer conducts Q&Q inspection at buyer's expenses.
Price is gross $8 net to buyer is $5 and $3 to both side agents and facilitators.
Payment is done via swift at the out-turn of barrels $8.
00USD par barrel.
$5.
00 net TO BUYER $3.
00 TO BROKERS, $1.
00 TO SELLER'S AGENT $1.
00 TO BUYER'S AGENT $1.
00 TO FACILITATORS (BUYER / SELLER $00.
50 CENTS EACH).
TANKER-TO-TANKER TRANSSHIPMENT PROCEDURE: 1.
Buyer and seller sign the Sales/ Purchase Contract Agreement with Banking coordinates.
2.
Buyer's bank issues via SWIFT, a PRE-ADVICE of the Irrevocable, Transferable, Divisible and Confirmed Letter of Credit, which will be issued to seller's bank in favour of seller.
3.
Seller Bank posts 2% ACTIVE PERFORMANCE BOND upon receipt and confirmation of buyers PRE-ADVICED LETTER OF CREDIT.
4.
Buyer places an Irrevocable, Transferable, Divisible and Confirmed Letter of Credit to Sellers bank in favour of seller.
5.
Seller confirms Buyers Irrevocable, Transferable, Divisible and Confirmed Letter of Credit, issues NOR (NOTICE OF READINESS), LONGSIDES within 72 hours with Buyer's Vessel and Transships the Cargo to Buyers vessel.
6.
Buyer's inspectors go on board vessel within 72 hours to conduct Q & Q, inspection report made available to Seller.
7.
Payment via swift made to the various accounts in the SPA within 72 hours of Submission of Cargo Documents, Inspection Report, Discharge Certificate and Masters report to Buyers Bankers and Vessel sails afterward.
$12.
00USD par barrel.
$6.
00 net TO BUYER $6.
00 TO BROKERS, $2.
00 TO SELLER'S AGENT $2.
00 TO BUYER'S AGENT $2.
00 TO FACILITATORS (BUYER / SELLER $1.
00 EACH).
Any seller who is willing and ready to do the above is for real.
You have to be careful in deals so you do not run into the wrong hands.
Crude oil deal pays, just be wise and do the right thing.
Source...